An analyst reports a standard deviation of returns of 51.9 percent for one airline over a ten-year sample. That figure measures its:
ADividend
BLiquidity
CSolvency
DVolatility
Answer & Solution
Correct answer: D. Volatility
1. Returns swung widely.
2. Standard deviation is the measure.
3. It measures volatility.
_Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
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